AUD Mostly Flat on Quiet Trading

AUD

Quiet trading has led to the Aussie Dollar opening flat against majors, except for the USD, where US data showed their manufacturing sector cooled more than expected. Asian equities started the month strong with the Hang Seng climbing 1.8%, the Nikkei 1.1% and the NIFTY 3.3%. The ASX closed 0.8% higher with financials and utilities outperforming. Commodities were mixed with gold flat, silver down -0.2% and Iron Ore up 1%. Low tier Aussie data brough no surprises with the Caixin PMI also landing near expectations at 51.7. This shows China's Manufacturing sector growing at the fastest pace in two years with strong production and new orders. Later this morning we'll see the Australian Current Account, although unlikely to impact FX markets. Our next main event for the Aussie Dollar will be GDP on Wednesday.
 

USD

AUDUSD opens higher at 0.6691, having touched 0.6632 lows yesterday afternoon before rallying after PMIs showed the US manufacturing sector cooling more than expected. ISM Manufacturing for May fell to 48.7 from 49.2, below expectations of an increase to 49.5. The contracting manufacturing sector and weaker construction figures show monetary policy is restrictive and is acting as a break on economic activity. The Dow fell to losses near 0.7% while the S&P gave up early gains to fall into the red and the Nasdaq halved early gains to be up around 0.3%. Tonight, we have JOLTS Job Openings set for release. That is expected at 8.37 million (Previously 8.49 million).
 

EUR

AUDEUR opens flat at 0.6134, having touched 0.6116 lows yesterday with mixed data released in the form of Italian and Spanish manufacturing PMIs. Italian was 54.0 (Previously 52.5), Spanish 45.6 (Previously 47.9) European equities were up with the DAX 0.6% and CAC 0.1%. We have low tier data coming out today with the heavy hitter this week being the European Central bank rate decision, on Thursday. 
 

GBP

AUDGBP opens flat at 0.5222, having touched 0.5212 lows yesterday and trading largely sideways with BRC Retail Sales coming out lower than expected 0.4% (previously 1.2%). The FTSE was down overnight at -0.2%. Looking ahead, low tier data coming out with the main event on Thursday, being their Construction PMI. Expectations are expansion in the UK construction sector.
 

NZD

AUDNZD opens a little lower at 1.0805 with quite trading yesterday due to NZ having a bank holiday. There is no data coming out today. Looking ahead, it is a pretty quiet week for the Kiwis, having low tier data coming out. Nothing today, tomorrow we'll see their Overseas Trade Index expected at 3.7% (Previously -7.8%)